Which of the following best describes a restrictive covenant?

Study for the Canada Mortgage Professionals Exam. Prepare with flashcards and multiple-choice questions. Each question includes hints and explanations. Get exam-ready today!

Multiple Choice

Which of the following best describes a restrictive covenant?

Explanation:
A restrictive covenant is a specific type of legal agreement that limits or restricts the ways in which a property can be used. This allows property owners to control certain aspects of the use or development of their land, ensuring that it aligns with the overall goals of a community or neighborhood. Such covenants are often established to maintain property values and community character by prohibiting certain activities or structures that may be deemed undesirable. For example, a restrictive covenant may prohibit the construction of multi-family units in an area designated for single-family homes. This not only aids in preserving the aesthetic and functional integrity of a neighborhood but also plays a role in zoning and planning efforts. Thus, the core aspect of a restrictive covenant is its function to impose limitations on property usage, making option B the best description of what it entails.

A restrictive covenant is a specific type of legal agreement that limits or restricts the ways in which a property can be used. This allows property owners to control certain aspects of the use or development of their land, ensuring that it aligns with the overall goals of a community or neighborhood. Such covenants are often established to maintain property values and community character by prohibiting certain activities or structures that may be deemed undesirable.

For example, a restrictive covenant may prohibit the construction of multi-family units in an area designated for single-family homes. This not only aids in preserving the aesthetic and functional integrity of a neighborhood but also plays a role in zoning and planning efforts. Thus, the core aspect of a restrictive covenant is its function to impose limitations on property usage, making option B the best description of what it entails.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy